National Republican., 1887-03-30
Views of a Banker on the Surplus.


evening the following;
Mr.. lsidor Wormscr, of the banking firm Of
I. ~ 5. Wormser went to Washington on bust
ness at the close of last week, and during his
stay called upon some of the highest officials
OF the government. AS the interest in the
money question at this and other leading
poirts and the agitation about strlngeney nad
reached the national capital. his opinion on
the situation was naturally sought. Coming
fresh from this great financial center, Mr.
Woimser was requested TO present his views in
person to Acting Secretary Of the Treasury
FaiTchild, with whom conference was really
had. The banker plainly told the Secretary
that, while we might tide over the summer
mCuths without serious trouble, the con,rlc-
tion OF national bank notes, growing ont of the
CulIIuS III OF the per cents. ana the iallnrG Oi
Congress to pass certain appropriation bills
and 10 adopt other necessary measures TO re-
lease the surplus in the Treasury, would un-
doubcdly lead TO q crisis in the fail unless the
department should come to tho relief OF tho
market, failing in which Il special session Of
Congress would haze TO be called. Mr.. Faic.
child answered in substance that lie possessed
ample authority to relieve any money pres
sure that may arise, and that he would use his
powers in case Of Strirgoncy. He went on to
tcrnal reveTue and the general fee fluid in thA
designated rational bank repositories, ali. In
reply to an intorroga alton us to the probable eS'
tent of such deposits, stated that they IaiEAg
reach sl5 100000, but II il was ubsDutaly no
ncsssry he could make them thrcc tines that
amount. The banker then Galed upon The
scarcity of government bonds abroad nnd
spoke of the difficulty of Obtaining round
lot in ondon, whereupon the Secretary re
marked that the national banks held llrge
amounts of these bones, which they could put
Up as security for deposits Of gOvcrnmGn.
money. In the general drift of the conversa.
tiCn the Secretary added that he had author.
ity under acts Of Congress TO buy / and ~ per
cents at The market price, and would so buy
them in case of stringency, which he believed
would induce holders To sell This policy, II
was undGrsoodi III case oInecd, would follow the
calling IN Of the last ofthe per cents outs.Gnd.
ing. The Secretary demonstrated by figures
that Oh Mar, !, 1857, notwithstanding the con-
traction oflank note circulation, we had Glj-
Ctoc1O more currency that on Jan. /. 1856, and
nlso over S5.C00,O00 more gold. All these ut
toranccs, coming from so high source, are of
prime Importance just now as foreShadowing
the policy of the government on the money
question.
Two things are notable In this extract:
First. The serious nature Of the crisis
impending, caused by the withdrawal of
money from the channels Of business and
ding 1t in the federal treasury. MIR.
WOrmser does not overstate it., and his
opinion is that Of a practical business man.
The peril bangs over business like the sword
of DamOcles, suspended by single hair
Second. Mr.. Fairchild, the Acting Secre
tary Of the Treasury, asserts that he can,
at lis discretion, place In the hands of the
national banks as much as forty five millions
Of collars! He can do this OF he can decline
to DO ii He can command q stringent
money market or ease the strlngency at
will And Mr. Fairchid is correct, no
doubt, in declaring the tremendous power
| which Is in his hands. Quite likely he
| would use II, as patriotic man should, to
relieve the people in an extreme case.
But Is any system safe which involves a
| discretion q such prodiglOus magnitude
which places it in the power of any one
man to decide the Issues Of life and death
| for the commerce Of great nation like
ours? Such system is standing menace
10 the people IL should not be tolerated
| snElo month. congress should be called
at otce in extra session, as Mr.. Wormser
suggests, and proceed to consider prompt
means Of distributing the surplus so as to
revive business, employ oil the idle labor at
good wages, and restore the prosperity
which las been bighted by the senseless
and wicked boarding Of the peoples money.
There Is 8 growing conviction among all
| ilffllir1rt It- -ip.ss
extra session is necessary. Tie President
could not do more popular act than to
invite the new Congress to meet him, and
IN patriotic spirit study measures to avert
threatened panic